Former SEC Chairman Jay Clayton discussed the SEC's recent decision on Ethereum exchange-traded funds (ETFs) and outlined the upcoming steps.

Clayton acknowledged that the approval of these listings is a positive sign for the product and believes that their trading is inevitable. However, certain complex issues still surround these ETFs.

He explained that the Ethereum ETF approval process involves two stages. The first step, which recently occurred, is the listing approval, while the approval of the actual product is still pending.

Before trading commences, the next critical step is the approval of the funds' registration statements. These statements provide comprehensive information about a fund's goals, costs, risks, fees, management, and organizational structure, ensuring potential investors are fully informed.

Despite these pending approvals, Clayton remains confident that they will eventually happen. He drew parallels with the approval process for bitcoin products, where most questions were resolved before listing. The recent decision affirmed the market's efficiency for listing the product on exchanges, but other questions remain.

During Clayton's tenure at the SEC from 2017 to 2020, the question of market efficiency prevented the approval of crypto ETFs. However, he noted significant progress in spot markets for both bitcoin and ether over time, indicating improved market development.

Clayton also highlighted the distinction between Ethereum ETFs and Bitcoin ETFs. Bitcoin is recognized as a commodity by the CFTC and current SEC Chairman Gary Gensler. However, the SEC hasn't definitively classified Ethereum transactions as non-securities yet.

He explained the difference between a commodity and a security using a Broadway ticket analogy, emphasizing that securities derive value from others' efforts, while commodities are based on completed products.

While certain aspects of Ethereum ETFs are still undecided, projections suggest potential trading could commence in July or August, with some speculating even earlier.